The Scottish Government has said it will no longer be able to deliver to schedule the projects in its key infrastructure pipeline, including the new HMP Glasgow super prison and the dualling of the A9.
Almost half of the schemes in its latest major capital projects update had been hit by further delays in the past year, it said, blaming high levels of inflation in the construction sector, lower-than-expected levels of capital grant and the need to redirect resources towards new infrastructure priorities.
Weather-sensitive work, unforeseen construction site difficulties, design reviews, longer commissioning periods, health and safety issues and the capacity of supply chains also contributed to delays.
“Progress is being made to deliver key infrastructure investments and major projects have been delivered against a continuing backdrop of challenging economic and financial conditions,” it said.
However, cost pressures meant it was no longer feasible to deliver the work to the original timeline.
“The high levels of construction inflation in recent years, combined with lower-than-expected capital grant and the need to prioritise funding to new additions to the infrastructure pipeline, has meant that the infrastructure pipeline we set out in the 2021 Infrastructure Investment Plan (IIP) cannot be delivered in full within the timeframe covered by the IIP,” it said.
It confirmed that the £1bn HMP Glasgow job, handed to Kier earlier this year, would be one of the projects to be delayed, with completion now due at the end of 2028.
Early works have been underway on the site since October, paving the way for a new facility with the capacity for 1,344 prisoners, replacing nearby HMP Barlinnie, Scotland’s largest prison.
But according to the update, the complex has been delayed for a year, with costs expected to rise by £252m.
The government blamed inflationary pressures within the construction industry, which it said had impacted on the costs of raw materials, labour and production globally.
It also said the current volume of public sector prison new-build works had put pressure on the capacity of the supply chain.
The long-awaited dualling of the A9 between Perth and Inverness will also be pushed back by around six months.
Balfour Beatty was named last year as the successful bidder for the 9.6km stretch between Tomatin and Moy.
The final tender price was £184.7m, with a total forecast project cost of £308m, which would remain unchanged, according to the update.
However, the project, initially expected to be up and running by the end of 2027, will now be operational at the end of spring 2028.
“This is later than previously reported and followed receipt and review of the contractor’s initial works programme, which required additional time for construction of the works than had been originally estimated,” it said.
It attributed the delay to factors including seasonal constraints on weather-sensitive work and environmental restrictions for working in watercourses.
Delays have also hit a new national treatment centre planned for NHS Forth Valley.
The new 30-bed ward in Larbert, to be delivered by Portakabin, would have allowed an additional 1,500 operations to be carried out each year.
Although the capital cost of the scheme remains unchanged at £11.1m, the delivery of the new ward has been hindered by a number of construction issues, including the incorrect installation of pipework and risks in relation to fire compliance measures, the report said.
No opening date for the ward, which was due to open last year, has yet been confirmed.
“All parties are working to develop a technical solution to resolve these issues,” it said.
But the Scottish Government was hopeful that the multi-year spending review announced by chancellor Rachel Reeves would help to provide greater funding certainty for the final years of the plan and beyond.
“We have struggled in previous years with only single-year budgets, making it very difficult to say whether a multi-year capital investment can go ahead,” it said.
It said it intended to publish a reset infrastructure pipeline to provide clarity on what would be delivered within the extended IIP period up to 2026/27.
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Kerry Lorimer